MegumaGold Corp. and Osprey Gold Development Ltd. provided the following update on their corporate operations and exploration-related activities. As Meguma and Osprey work toward finalizing the previously announced plan of arrangement, management and technical teams from both companies have been reviewing data from the combined project portfolio and prioritizing targets, budgets, and work plans for an aggressive first phase of work expected to commence immediately following the closing of the plan of arrangement.

The combined database supports plans for an extensive multi-phase drilling campaign to test numerous targets on several projects within the combined portfolio. The initial exploration focus of the combined entity will be developing target areas within a close proximity of St Barbara Limited's (“St Barbara”) operating Touquoy Mine in the Moose River Gold Mines area, which includes Osprey's Caribou project and MegumaGold's Killag and Touquoy West properties. Combined results of these programs define three high priority target areas on the Touquoy West property.

The IP survey chargeability responses detected at Touquoy West, which are in part spatially associated with existing soil geochemistry, magnetometer, and VLF-EM anomalies, may indicate the presence of disseminated sulphide mineralization similar in style to that present adjacent to the Touquoy gold deposit located a few kilometres to the east along the Moose River Anticlinal trend. The three main arsenic-gold anomalies referred to in the figures above parallel the interpreted northeast trend of the Moose River anticlinal fold corridor and are developed in areas either directly overlying, or to the south of, the interpreted main fold hinge zone. This fold corridor structural association is interpreted by the Company to have geological similarities to that of the Touquoy Gold Mine deposit, located within the same anticlinal corridor approximately 2.5 km northeast of the new anomaly described above.

As reported previously, the western-most anomaly on the Touquoy West Project survey grid remains open onto the adjacent Genius Metals Inc. property to the west that was optioned by MegumaGold.